FireEye Rallies from Lows, Just in Time for Cybersecurity Month
[showmodule id=”58959″]
October is cybersecurity month, and a pioneering stock in the industry has come to life.
FireEye (FEYE) has rallied 15 percent in the last two weeks and is having its best month in more than two years. A combination of takeover speculation, improved results and turnaround efforts are fueling the move.
The move started on October 2 when Business Insider reported FEYE was seeking a buyer. Analysts started throwing around numbers close to $22 as a potential valuation, well above its $13-14 range at the time.
Six days later management said revenue would be “at or above the high end of the Company’s prior guidance range.” It also unveiled upgrades to some of its products in a presentation to analysts.
Most of the response seemed to be positive, although FEYE has a long history of disappointing investors. It went public to much fanfare in September 2013 for $20, and soared as high as $97.35 by the following March. It struggled to make money and soon the honeymoon was over. The shares slipped under $20 by early 2016 and have been there ever since.
Earnings This Month
Is FEYE finally due for a turnaround? Investors may get a clue when it reports its next quarterly numbers after the closing bell on October 29.
The glass-half-full crowd might also see potential value because it trades for less than 4 times revenue. Peers like Fortinet (FTNT) and Palo Alto Networks (PANW) trade for twice that amount, which makes sense because FEYE is less profitable. But what if management successfully turns the business around?
In conclusion, cybersecurity remains a big growth area as more data goes online. An early leader in the space has been dead in the water for years, but now it may be getting a second look.
Note: This post is intended for educational purposes only and shouldn’t be viewed as a trade recommendation.
David Russell is VP of Market Intelligence at TradeStation Group. Drawing on two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial.
Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them apprised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.
Money is flowing back into stocks as investors hope for a better inflation report this week. The S&P 500 rose 1.9 percent between Friday, May 3, and Friday, May 10. It was the third straight positive week. More than four-fifths of the index's members advanced,...
Oracle jumped to new highs almost two months ago. Now, after a pullback, the software giant may have found support. The first pattern on today’s chart is the gap higher on March 12 after earnings surprised to the upside. ORCL retraced the move and is starting to...
Most of the big earnings reports have now occurred, and so far they've done little to boost the market. Companies like Microsoft (MSFT), Meta Platforms (META), Netflix (NFLX), Caterpillar (CAT) and Intel (INTC) reported profits above Wall Street estimates. However...
Leaving TradeStation
You are leaving TradeStation.com for another company’s website. Click the button below to acknowledge that you understand that you are leaving TradeStation.com.
This event is hosted on YouCanTrade. The information for this event is being provided for informational and educational purposes only.
You are leaving TradeStation Securities and going to YouCanTrade. YouCanTrade is an online media publication service which provides investment educational content, ideas and demonstrations, and does not provide investment or trading advice, research or recommendations. YouCanTrade is not a licensed financial services company or investment adviser and does not offer brokerage services of any kind.
TradeStation Securities, Inc. provides support and training channels hosted on YouCanTrade, its affiliate. Other than these support and training channels, any services offered by YouCanTrade are not sponsored, endorsed, sold or promoted by TradeStation Securities and it makes no representation regarding any YouCanTrade goods or services.
To acknowledge you are leaving TradeStation Securities to go to YouCanTrade, please click
This website uses cookies to offer a better browsing experience and to collect usage information. By browsing this site with cookies enabled or by clicking on the "ACCEPT COOKIES" button you accept our Cookies Policy. To block, delete or manage cookies, please visit your browser settings. Restricting cookies will prevent you benefiting from some of the functionality of our website.ACCEPT COOKIES